The recent casualty of the motor tanker "Prestige" - which is reported to belong to Greek interests - off the NW coast of Spain and the extended pollution which it caused, has raised many questions as regards the adequacy of the existing legislative frame relating to a safe and effective control of the seaworthiness of vessels of this category; but it principally showed in the most dramatic way how necessary it is to withdraw from trading all single-hulled tankers, as these vessels are more susceptible to a possible accident and entailing pollution of the sea environment. According to the information in the press the above vessel was built at Hitachi Shipyard in Japan in 1976 and was single-hulled. She is one among those vessels which were built massively in Japan during the 1970 decade and hardly covered the safety requirements of that period.

According to the same press reports, almost all tankers which caused extensive ecological destruction were single-hulled and were built in Japan during the crucial decade of 1970. Among such vessels there were the "ERRICA" (which sank off the French coast in December 1999), the "SEA EMPRESS" (which in February 1996 spilled about 72,000 tons of crude oil near the port of Milford Haven in Wales), the "BRAER" (which sank off the Shetland Islands in January 1993), the "AEGEAN SEA" (which had a similar casualty off the Spanish coast in December 1992), the "HAVEN" (which spilled more than 50,000 tons of oil off Genoa, Italy in April 1991) and the "EXXON VALDEZ" (which grounded and spilled 38,800 tons of crude oil into Prince William Sound in Alaska in March 1989 - the worst spill in US history).

Following the "PRESTIGE" casualty strong pressure is exercised on the European Commission by EU member States, and particularly by France, Spain and England, for immediate enactment of a new Regulation providing for the withdrawal of all single-hulled tankers.

The M/T "PRESTIGE" presented a crack in her hull while she was sailing under adverse weather conditions off the NW Spanish coast. When it became clear that her sinking would be inevitable, the Spanish Authorities ordered her towing away from the coast. However, this did not prevent the pollution of the coastline of the major fishing area of Galicia in NW Spain at a distance of about 300 klms with large quantities of crude oil which leaked out of the vessel. There is now the fear that additional quantities of crude oil may come out from the sank vessel in view of the great pressure which is exercised on the innerwalls of her tanks at the depth of about 3600 mtrs where the wreckage now lies.

The Committee of Ministers of Transport of the European Union at its meeting on 6 December 2002 adopted a proposal by the Greek Minister of Merchant Marine providing for the gradual withdrawal of single-hulled tankers.

Source: Daily press

Legislative developments in the field of maritime law Ratification of the Amendments to the Barcelona Convention, 1976

By Law 3022/2002 Greece ratified the amendments to the Barcelona Convention 1976 - which were adopted in Barcelona on 10 June 1995 - and the amendments to the Protocol 1980 "about the protection of Mediterranean Sea from continental sources" - which were adopted in Syracouse, Italy, on 7th March 1996.

By these amendments the title of the treaty was amended to "Convention for the Protection of the sea environment and the coastal areas of Mediterranean Sea". The Section relating to geographical application of the Convention was also amended by extending to coastal areas which will be specified by each contracting State in regard to its own territory. The meaning of the term "pollution" was expanded and the obligations of the contracting States were defined in a more specific way in so far as the prevention, reduction and obliteration of the pollution of the Mediterranean Sea is concerned, whether such pollution is caused by rejections from vessels or aircraft or from exploration and exploitation of sea shelf or from substances, whether toxic or others, deriving from continental sources and/or from trans-border transport of dangerous waste and their disposal. Protocol amending the Athens Convention 1974.

On November 1, 2002, a diplomatic conference held at the IMO Headquarters in London, adopted a Protocol effecting an overdue update to the 1974 Athens Convention relating to the "Carriage of Passengers and their Luggage by Sea". The Protocol shall enter into force within 12 months after its ratification by 10 States and introduces, inter alia, three significant amendments, based on environmental pollution liability and compensation regimes: (a) Strict liability: the carrier is liable for shipping incidents, unless it proves that the incident resulted from a limited number of force majeure related exceptions or by an act or omission of a third party done with the intent to cause the incident; (b) Higher limits:The limits of liability are increased significantly (250,000 SDR per death or personal injury instead of the previous 46,666; similar increases are provided for loss or damage to luggage and vehicles); the above limit may be exceeded, up to a maximum of 400,000 SDR per death or injury, but in such case the carrier is entitled to prove that it was not at fault; (c) Compulsory insurance: The carrier is required to maintain insurance or other financial security (e.g. bank guarantee) to cover the above limits of strict liability per passenger per carriage and shall be provided with a pertinent certificate.

The new Protocol states that Articles 1 to 22 of the Convention, as revised by the Protocol, together with Articles 17 to 25 of the Protocol and the Annex thereto, shall constitute and be called "the Athens Convention relating to the Carriage of Passengers and their Luggage by Sea, 2002". States which ratify the 2002 Protocol are required to denounce the 1974 Convention and its 1976 and 1990 Protocols.

Aegean Institute on the Law of the Sea and Maritime Law

By Presid. Decree no. 167/01.07.2002 the Organisation of the Aegean Institute was approved. The mission of this Institute is the research and study of the Law of the Sea and Maritime Law.

The services of the Aegean Institute comprise the scientific and the administrative service. The scientific service is staffed with special scientific personnel which is employed for a period of 3 years and comprises three posts of principal researchers and one post of associate researcher.

The Institute is headed by a Manager appointed by decision of the Minister of Justice for a period of 3 years. The Manager should be a law graduate with administrative experience and a post-graduate degree in the Law of the Sea or Maritime Law.Revised SOLAS in force As of 1st July 2002 the revised Chapter V ("Safety of Navigation") of S.O.L.A.S. 1974 providing for the equivalence of electronic and conventional charts came into force.

Source: Shipping News magazine

"Black box" also on vessels.

All vessels which were or are to be built after 1st July 2002 must be supplied with a Voyage Data Recorder ("VDR").

For vessels built before 1st July 2002 a time schedule is provided, within which they are obliged to be supplied with a similer V.D.R.

This is mentioned in a circular issued by the Inspection of Merchant Vessels Department of the Greek Ministry of Merchant Marine. In this same document clarifications are given in regard to the approval, acceptance and establishment of the above equipment. It is also underlined that any vessels which would not comply with the above requirement will be fined and their sailing be forbidden.

Source: Shipping News magazine

NEWS

1.Elaboration of Rules of Maritime Arbitration

The Hellenic Society of Maritime Lawyers, in the course of several meetings of its Members which have been held since September 2002 and continue todate, elaborated on a system of Rules of Maritime Arbitration which after their approval and enactment will be used as the Rules to be applied by the Society of Maritime Arbitrators of Piraeus. The Rules under elaboration are based on a Draft which was prepared by the lawyer Mr. Anthony Tsavdarides of the Member of the Society IKRP Rokas & Partners.

2. Joint Conference of the Hellenic Association of Maritime Technical Consultants & Surveyors and the Hellenic Society of Maritime Lawyers

A joint conference of the above two Associations took place on Tuesday, 28 January 2003 at the Conference Room of the Port Organisation of Piraeus (at 10, Akti Miaouli street) on the subject: "The contribution of the Legal and Technical Consultant in new shipbuildings (drafting the shipbuilding contract, specifications, attending construction, delivery and acceptance)".

The following law offices are members of the Society: Paul C. Avrameas & Partners


Vgenopoulos & Partners
Gerassimou & Partners
N. Goyios - A. Nassikas
G & N. L. Daniolos
I. Issaias
Karatzas & Partners
Vlassis N. Macris & Associates
Panos D. Mavroyiannis & Partners
G. E. Bairactaris & Partners
N. C. Baltazanis - Kat. Ploumidou & Associates
Moratis - Passas
M. Proestou
G. Pologiorgis, Th. Babalis, N. Troullinos, T. Mavrou
Deucalion Rediadis & Sons
IKRP Rokas & Partners
Roussos & Hatzidimitriou
Sarantitis & Partners
Sapounakis & Associates
Sarlis, Potamianos, Garetsos
Theo V. Sioufas
N. Scorinis
Stylianou & Stylianou
P. Sotiropoulos
Gr. J. Timagenis
G. Tzagakis - A. Koutsoucos - S. Focas

a) Free supply of services in inner-state sea transport - Court of European Union - Decision in case C-205/99 dated 20th February 2001, ECR (2001) I-1271

The joint provisions of Articles 4 and 1 of Regulation (EU) 3577/92 for the application of the principle of free supply of services in inner sea transport in the member States (cabotage) do not allow, in principle, that the supply of services of regular inner-state sea transport to and from islands as well as between islands, be dependent on prior administrative permission. Exceptionally, this is only allowed in case it can be proved that there is a real need of public service because of insufficiency of the services offered by regular transport under conditions of free competition and it is also proved that this system of prior administrative permission is necessary and in proportion to the aim pursued. Such a system should be based on objective criteria that do not introduce any discriminations and should be known a priori to interested enterprises.

In case of prior administrative permission, E.U. law is not opposed to the power of a member State to include among the conditions of granting and maintaining such permission the demand that the shipowner should not be in default in regard to the payment of his tax debts or social security contributions. This condition, if applied without unfavourable discriminations, can give the member States the possibility to control the solvency and the capability of a shipowner to offer the above services. - Article 4 para 1 of the Regulation 3577/92 allows to a member State and in respect of the same line or the same sea route to impose on maritime enterprises obligations of public service and at the same time to enter into contracts whereby to entrust to other enterprises the public service of performing the same regular line to and from islands. However, this presupposes the existence of a real need of public service and also the application of the principle of equity that excludes unfavourable discriminations and is justified by the pursued aim of public interest.

b)Supreme Court (Arios Pagos) decision no. 356/2002 (B2 Civil Section) - Liability in case of marine labour accident. This is governed by the law applying to the contract of crew employment.

According to the combined provisions of Articles 25 and 26 of Greek Civil Code, 1, 2 and 3 of the Convention of Rome of 1980 (ratified by Law 1792/1988), 914 of the Civil Code, 1 and 16 of L. 551/1915 and 66 of the Code of Private Maritime Law the liability in case of a marine labour accident, which is different and does not equate to the liability in case of tort, is not regulated by the law provided by Article 26 of the Civil Code in respect of obligations arising from tort but by the law which governs the contract of crew employment, i.e. the law provided by Article 25 of the Civil Code. In case it is agreed that Greek law will govern the contract of employment, then and as part of Greek law they will be called upon for application also the provisions of the London Convention which was ratified by Law no. 1045/1980, the London Protocol which was ratified by Law no. 1159/1981 and the United Nations Convention which was ratified by Law no. 2321/1995.

From other aspect, under Greek law the victim of a marine labour accident or in case of death his lawful relatives and his wife are entitled to file proceedings under the provisions of general civil law and to apply not only for full compensation in respect of their real damages but also for pecuniary satisfaction of their moral damages. This latter claim is always decided according to common civil law (Articles 914, 922 and 932 of the Civil Code). For the foundation of such a claim it is not necessary to establish the special fault of tresspassing the security measures provided in each particular case but it is sufficient to establish negligence of the employer or his servant under the above common civil law provisions.

c)Supreme Court (Arios Pagos) decision no. 295/2002 - Greek law is the law applicable for the classification of claims in case of auction of a foreign flag ship in Greece.

Auction of a ship under foreign flag which has been arrested and seized in a Greek port. Classification of claims. Greek law is the law applicable. In order that the maritime liens provided by the Greek Code of Private Maritime Law may prevail and have priority over a maritime mortgage, the same maritime lien must also be provided under the law of the State of the ship's flag. Maritime liens under Articles 205 of the Greek Code of Private Maritime Law and 1507 of the Commercial Code of Panama.

d)Supreme Court (Arios Pagos) decision no. 1002/2002 - Athens International Convention 1974 for the carriage of passengers by sea. Liability of the carrier. Two years time limit in respect of all claims for indemnity whether based on contract or in tort.

The International Convention for the carriage of passengers and their luggage by sea which was signed in Athens on 13.12.1974 and was ratified by Greece by Law 1922/1991, applies to every international carriage by sea, as this is defined in Article 1 para 9 and under the conditions provided in Article 2 para 1.

Any writ of action pursuing compensation for death or bodily injuries to a passenger or for loss or damage to luggage during an international carriage by sea where the above international Convention applies, cannot be brought against the carrier or the person acting on his behalf in a way other than the one provided in the above Convention (Article 14). Accordingly Article 16 provides that any action for compensation for death or injury to a passenger will be barred after the lapse of two years. This time limit in case of injury starts running from the date of the passenger's disembarkation from the vessel. The issues of suspension and interruption of the time limit are regulated by lex fori but in any case no action can be brought under the provisions of the above Convention after the lapse of three years from the date of the passenger's disembarkation. The above short-term time limit is applicable to any action for indemnity arising from the above cause irrespective whether the claimant attempts to found his right on the contract of carriage by sea or in tort.

The above interpretation is consistent with Article 16 and also with the aim of the above International Convention which aiming at the unification of the Rules relating to the liability of the sea carrier, established in a uniform manner the above short time limit in respect of the specific legal relationship.

e) Regulating Committee for Inner Sea Transport - Decision No. 79/2002

Free supply of services in inner sea transport. Approving itinerary of vessel for the service of a coastal line. The free supply of services in inner sea transport constitutes a fundamental principle of the Convention of the European Union; it is only subject to those limitations which are justified by imperative reasons of public interest. Such a reason is the need to secure adequate regular services of sea transport to and from islands as well as between islands so that the economic and social development and generally the survival of their population may be secured without this to mean that all transport to and from islands are considered by definition to be services of public interest.

The system of limitations must be applied according to the principles of non-discrimination and proportionality and the knowledge by the interested parties of the criteria imposed should be secured. Such knowledge constitutes the Ministerial Decision relating to the network of coastal transport. It can in no case operate as means to prevent participation in the market for the service of a coastal line other than the one provided in the Ministerial Decision.

The statement of itinerary in a regular line constitutes a right which is established by Law 2932/2001 and it cannot be transformed to a system of approvals by the Administration in relation to coastal transport. The return of an inadequate file relating to statement of itinerary for the purpose of having it completed constitutes a permissible limitation.

Statement of itinerary by a shipowning Company to cover a line to specified Greek islands. Refusal of accepting this statement by the Minister at the reasoning that the specific line was not included in the network of coastal transport and that there was a typical deficiency in the file submitted by the Company as there was no confirmation by the competent Authority that the specific vessel fulfilled the conditions needed to offer services to inland sea transport.

Proclamation of competition by the Minister to cover the line provided in the network. Annulment of the relevant Ministerial Decision, after a recourse to the Regulating Committee, on the ground that (a)if the Administration considered that the specific line of the network concerned the service of public interest, it should have imposed obligations of public service by a duly justified decision and (b)the provision of a specific date for the submission of a missing document in the file should have an indicative character so that it may not constitute a source of discrimination against the specific category of vessels.

f)Supreme Court (Arios Pagos) 576/2002 - Joint ownership in shares of Shipowning Companies Distribution by Court decision.

The share in a shipowning Societe Anonyme is a tangible asset and at the same time a title of value. As a chattel it may be the object of separate ownership and it incorporates the shareholder's legal relationship which follows the right of ownership to the title. A joint-ownership to a share is legally possible and in connection with more than one shares in the same shipowning Company a number of joint ownerships is created which is equal to the number of shares.

The distribution of shares under Article 480 of GCCP may be made by apportionment of the total number of shares to parts corresponding to the portions of the various shareholders so that each of them may take a proportionate number of shares.

Distribution of Shipping Enterprises which constitute a financial entireness according to Article 483 of GCCP. Specifically in Societe Anonymes, each of which is the owner of one ship that is operated by itself, it is possible for the Court, on application by one of the joint shareholders, to adjudicate to the applying party the entirety of the specific enterprise against payment of an amount equal to its market value. In such occasion it can be considered as a financial whole in the meaning of the captioned provision either the total number of shares in the specific Company or their majority, given that their possession means control of the Company and the assets belonging to it.